Thailand-based SCG has purchased a majority stake in Indonesian paper packaging firm Fajar Surya Wisesa for around THB21.15bn ($665m).
Fajar Surya produces a wide range of products, including linerboard (KLB) and corrugated medium paper (CMP) for carton box packaging and coated duplex board (CDB) for display packaging.
With six paper machines, the company produces around 1.3 million tons of packaging papers per annum.
Fajar Board, which is a paperboard with a white, glossy-coated, top layer finish and grey bottom layer, can be used for light-weight packaging materials that need quality printing and suitable for applications such as pharmaceutical products, shoes, household goods, processed foods and consumer electronics.
Fajar Liner is a brown packaging paper used for the outer layers of corrugated sheets. Made from recycled paper, the packaging paper offers better protection for contents. Furthermore, its smooth surface said to facilitate better printing quality.
Fajar Medium is a fluting paper used in the construction of carton boxes. Its characteristics are said to offer better protection during transportation.
SCG president and CEO Roongrote Rangsiyopash said: “SCG is thriving to push forward long-term growth as one of its key strategies in 2019 by continuously expanding its businesses in ASEAN countries.
“Recently, Packaging Business of SCG invests in a 55% stake in PT. Fajar Surya Wisesa Tbk. (or “Fajar”), a leading Indonesian packaging paper company and also a listed company on the Indonesia Stock Exchange.”
The acquisition is part of SCG’s strategy to become a total packing solutions provider by establishing more production base in ASEAN countries such as Vietnam, Malaysia, Indonesia, and the Philippines.
The Thai firm said that its packaging business has been developing innovations and technologies to add value to products, services and production process to fulfill the requirements of enterprises and consumers’ consumption.
Rangsiyopash further added: “The major shareholding in Fajar will allow SCG to enhance its ASEAN growth, especially in Indonesia that provides tremendous future growth opportunity for Packaging Business.”